You do know that most miniDV camcorders will allow you to capture directly to a computer via Firewire?
If you're still looking on the other side of things, it's up to you if you want to use flash or HDD. Flash is a tad expensive at the moment, but will come down in the future. HDD requires no external media, but you have no "physical media".
I am trying to find a camcorder with high quality audio and video recording. I would like to stay between 500 and 700 hundred dollars, but will go a little higher if it's worth it. I need to be able to plug the camcorder directly to the computer, so no tapes. I was looking at cameras and I saw some really good ones that were flash card instead of hardrive. I know how the flash card memory works instead of harddrive. Any ideas or recommendations?